- Latvia’s State Revenue Service updated guidance on the VAT exemption for defense-related goods and services procured under the EU SAFE instrument (Council Regulation (EU) 2025/1106).
- The exemption covers imports, domestic supplies, intra-Community supplies, and intra-Community acquisitions linked to SAFE-supported procurements, but only for transactions between the final recipient and final supplier; subcontractor supplies are excluded.
- The exemption does not apply to a 20% advance payment on domestic supplies of goods made before the SAFE Regulation took effect on May 29, 2025.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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